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100 billion chip scam farce ends! Wuhan Hongxin demobilizes all employees

via:驱动之家     time:2021/3/1 3:48:49     readed:270

On February 27, media reported that Wuhan Hongxin semiconductor company will lay off all its employees.

According to people familiar with the matter, recently Hongxin senior management issued a notice in the internal group:

Based on the current situation of the company, the company has no plan to resume work and production. After the company's study, it is decided that all employees should apply for resignation before leaving work on February 28, 2021, and complete the resignation procedures before leaving work on March 5, 2021; the leave personnel can handle it online.

There was no sign of the news before it was released, and departments were still preparing for normal production, an internal employee said.

It is understood that there are a total of 240 people in this internal group. As for whether there will be compensation after dismissal, it is not known yet.

According to the plan of major municipal projects under construction in Wuhan in 2020,Wuhan Hongxin has a total investment of 128 billion yuan, ranking first in semiconductor manufacturing projects.


In 2019, Wuhan Hongxin hired Jiang Shangyi, a legendary figure in the chip industry and a meritorious Minister of TSMC, as the CEO.

At that time, Jiang Shangyi's joining in the industry caused quite a stir, attracting many powerful semiconductor engineers for Wuhan Hongxin.


However, just one month later, Wuhan Hongxin mortgaged ASML lithography machine to Wuhan Rural Commercial Bank with 580 million yuan. Since then, the star semiconductor company has been constantly exposed negative news, such as arrears of project funds, freezing of the company's account, and zero paid in capital of the major shareholder Beijing light blueprint.

On July 30, 2020, Wuhan Dongxihu District government, the former investor, issued the report "analysis of economic operation in the field of investment and construction in Dongxihu District in the first half of the year". The report clearly pointed out that there was a large capital gap in Wuhan Hongxin project, and the risk of project stagnation caused by the rupture of capital chain at any time.

In November of the same year, the senior management of Wuhan Hongxin changed their blood and changed their equity. According to the enterprise investigation, Beijing light blueprint Technology Co., Ltd., which originally held 90% of the shares, and Wuhan airport economic and Technological Development Zone Industrial Development Investment Group Co., Ltd., which held 10% of the shares, both withdrew.


The original team members, such as Li Xueyan and Mosen, also withdrew from the company, and Wuhan Hongxin was taken over by the Wuhan government.

In addition, according to Taiwan media DIGITIMES, a person familiar with the matter disclosed that Jiang Shangyi has submitted a written resignation to the company and will no longer participate in any project operation of Hongxin.

After the government takes over, how to solve the Hongxin factory, the mortgaged lithography machine and the arrears of project funds will become the focus of attention.

Recently, Wuhan Hongxin reported the news of dismissing employees, which means that the 100 billion chip investment will be completely destroyed, and how to solve the existing problems has become a mystery.

Under the upsurge, the core making movement is like chicken feather

Wuhan Hongxin is not the first example of a large semiconductor project falling into a bad end.

In recent years, driven by the central and local governments' support policies, there has been a nationwide upsurge of core making. In 2020, as the United States intensifies its crackdown on China's semiconductor industry, the supply of chips will be seriously insufficient, and the calls for core manufacturing and localization will be even higher.

According to the enterprise survey data,As of February 2021, there are 66500 chip related enterprises in China, and 22800 newly registered enterprises in 2020, a year-on-year increase of 195%.


Since 2021, the data growth has been more rapid, with 4350 registrations in the first two months, a year-on-year increase of 378%.

In terms of regional distribution,Guangdong ranked first with 22900 enterprises, Jiangsu and Zhejiang ranked second and third respectively, while Shenzhen, Shanghai and Guangzhou ranked top three.

It is worth noting that under this wave of core manufacturing, Huawei hisilic, SMIC international, Changjiang storage, Cambrian and other national big factories have risen rapidly, but at the same time, it has also led to the phenomenon that enterprises cheat government subsidies and obtain financing in the name of making chips. Finally, the 10 billion level semiconductor project is in general failure due to the rupture of capital chain.

as report goes,In a short period of more than one year, six 10 billion level semiconductor projects in Jiangsu, Sichuan, Hubei, Guizhou, Shaanxi and other five provinces have been suspended successively, with a total planned investment scale of 297.4 billion yuan, and now they have become the largest uncompleted projects.

For example:

Chengdu Gexin: it is jointly established by us chip foundry grofond and Chengdu municipal government. The company's total investment has exceeded 10 billion US dollars and plans to build a 12 inch wafer factory in Chengdu. However, it has not been put into operation.

Nanjing Deco codeThe total investment is about 2.5 billion US dollars. It plans to produce power management chip and MEMS chip. However, in November 2019, the company was announced by the people's court as a dishonest person for breaking its capital chain. It is reported that the Nanjing government has invested nearly 400 million yuan in the project, and is now doing everything possible to find investors to prevent the project from failing.

Kuntong, Shaanxi

Guizhou huaxintong: in 2016, Guizhou provincial government aimed at the server processor with high requirements for industrial ecology and invested billions of yuan to establish huaxintong in cooperation with Qualcomm. Three years later, huaxintong was unable to sustain its business and announced its closure.

How can the government take the road of China's core manufacturing?

On October 20, Meng Wei, spokesman of the national development and Reform Commission, said at a news conference:

Meng Wei said that in view of the current chaos in the chip industry, the national development and Reform Commission will focus on four aspects in the next step

First, strengthen the service and guidance for the construction of major IC projects, and do a good job in planning and layout;

Second, accelerate the implementation of some policies to promote the high-quality development of the integrated circuit industry and software industry in the new era, and grasp the introduction of supporting measures;

It is worth mentioning that last year, affected by the global epidemic, mismatch of supply and demand information and other factors, China's auto chip supply was seriously insufficient. The main reason is that more than 90% of China's auto chips are imported.

In order to strengthen the ability of independent supply and promote the communication and cooperation between the upstream and downstream of the industrial chain, the Ministry of industry and information technology recently led the relevant units to compile the "Automotive semiconductor supply and demand docking manual", which collected thousands of supply and demand information and initially set up a communication platform.


At present, many auto companies have invested in the market. On February 8, Great Wall Motor announced the completion of its strategic investment in an automotive intelligent chip enterprise in Beijing. BAIC, Geely and other auto companies have also invested in the field of smart chips.

However, in the short term, the technology requirements of self-developed chips are relatively high, and most auto companies choose to invest and cooperate with third parties. The cooperation mainly focuses on the front-end links such as chip R & D and design, rather than investing a lot of money to build factories to cope with the current shortage of chip supply.

Finally, whether it's the car chips in short supply or the 10 billion level uncompleted projects, there are potential problems in the current chip industry. As Professor Wei Shaojun said, the chip industry needs to really realize what we want to replace and what we need to control in order to really benefit the industry.

Write at the end

Gao Qiquan pointed out that,Wuhan Hongxin semiconductor originally claimed that its total investment exceeded 100 billion yuan, but the funds were not fully in place, so it could only carry out the plant construction project with the smallest cost proportion. Even imported equipment can not be bought, because foreign exchange is controlled by the government.

He said,Since last year, the mainland government has strictly controlled investment projects in semiconductor manufacturing. It must be confirmed that the funds are in place and the product technology is available before the project is allowed to start looking for talents.


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